Healthcare Growth in Dubai
Dubai’s healthcare sector has become one of the most dynamic and rapidly expanding industries in the region. Driven by government initiatives, a robust legal framework, and a growing demand for specialized services, the sector offers significant investment opportunities for local and international stakeholders.
The number of healthcare facilities and professionals licensed by the Dubai Health Authority has grown significantly in recent years. Two main factors have driven this increase: population growth and the implementation of mandatory health insurance. Dubai’s healthcare market has an average annual value of USD 4.63 billion.
The number of licensed healthcare facilities reached 4,728, reflecting a compound annual growth rate (CAGR) of 8.0% between 2018 and 2023. The total number of healthcare professionals in Dubai increased from 38,138 in 2018 to 56,752 in 2023, reflecting a CAGR of 8.3%.
Key Investment Areas and Growth Drivers
The rising demand for healthcare services is fueling the need for investment, driven by increasing private healthcare utilization, population growth, a high prevalence of chronic and non-communicable diseases, and Dubai’s expanding role as a health tourism hub.
Dubai has emerged as a prime investment destination due to its strategic location, diverse and growing population, increasing influx of medical tourists, and strong support and guidance for investors. Here are some key investment areas to consider when investing in Dubai’s healthcare sector:
A. Long Term Care and Rehabilitation
Dubai’s population aged 60 and above is expected to increase from 2% to 6% by 2030, driving greater demand for healthcare services, particularly geriatric care. As a result, the aging population, coupled with other healthcare needs, will further accelerate the demand for long-term care and rehabilitation facilities.
B. Wellness and Anti-ageing
In 2022, international wellness tourists spent 41% more than the average international visitor, while domestic wellness tourists spent 175% more than their counterparts. This surge in demand highlights a growing shift toward prioritizing holistic health and well-being.
C. Precision Medicine
Precision medicine is a key priority for the UAE, highlighted by the launch of the National Genome Strategy. This initiative aims to advance healthcare research, innovation, and personalized treatments. The Middle East and Africa precision medicine market is projected to grow at a 10% CAGR, reaching USD 2.5 billion by 2023, while the global market is expected to hit USD 142 billion by 2026.
D. Mental Health
There is a significant supply gap in dedicated inpatient mental health facilities in Dubai, highlighting the urgent need for investment in this sector. Neuropsychiatric disorders account for 20% of the UAE’s disease burden, with 75% linked to depression and anxiety. While public-sector inpatient admissions have grown at a CAGR of 41%, private-sector admissions have declined by -22% due to the lack of specialized facilities.
Initiatives Supporting Growth
The government has introduced policies to attract investment and facilitate the development of the healthcare sector:
- The Golden Visa Program: Healthcare professionals, researchers, and investors can obtain long-term residency, ensuring a stable ecosystem for innovation and collaboration.
- Dubai Health Strategy 2026: This initiative aims to make Dubai a global health tourism hub, focusing on advanced technologies and innovative care models.
- Operation 300bn: A strategic initiative by the Ministry of Industry and Advanced Technology to strengthen the UAE’s industrial sector. Focused on tech adoption and innovation, the plan spans 11 key industries, including pharmaceuticals.
- The Dubai Economic Agenda D33: Aligns with Dubai’s ambition to foster a thriving ecosystem for healthcare startups, positioning the city as a hub for innovation in the sector.
- Free zones: Dubai Science Park and Dubai Healthcare City provide attractive incentives for healthcare companies, including tax benefits, foreign ownership, no trade barriers or quotas, and advanced infrastructure.
Future Outlook and Expectations
The UAE’s healthcare sector is poised for robust growth, with Dubai’s healthcare sector expected to contribute 5.1% of GDP by 2029. According to market research by Custom Markets Insights, Medical Tourism Market is expected to record a CAGR of 8.70% from 2024 to 2033. In 2024, the market size reached a valuation of USD 1.085 million, and by 2033, it is anticipated to grow to USD 2.3 million.
The use of robotics in the healthcare sector is set to expand further. Robotic-assisted surgery is becoming increasingly common in hospitals across the UAE, where hundreds of procedures are performed annually. According to an EY report, the global medical robotic systems market is expected to reach a value of USD 16.1 billion by 2030.
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